Negotiation should be a good deal in the extractive industry

By Juliet Aguiar, Dar es Salaam

Neema  Lugangira, a former Acting Director for Local Content in Investments at Tanzania has noted that negotiation in the extractive industry,  should start when there is an act  to enable a country to make a good deal.

“You need to know your stand as a country – you must have strong negotiating power, know what you really looking for and it has to be strategic” she said.

Ms. Luganira was speaking on Local Content for Tanzania, Uganda and Ghanaian journalists at the on-going media training on oil, gas and mining at Dar es Sallam in Tanzania.

She pointed out that it is important for countries with natural resources to have power hand when negotiation to get a good result – government should ensure that there are robust policy and legal framework that will help in this direction.

“Government needs to be firm in their decision and needs to validate information when dealing with the extractive industry- if you do not get a good deal, there will be no economic improvement in your country” she added.

According to her before exploration of any natural resources, government should put in place laws ahead as well as systems that will help local businesses take advantage in the sector.

She said there is the need to develop the local industries to become competitive to be able to meet standards in the International market.

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